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The line, which is overseen by Peg Hunter, general merchandise manager, housewares, Canadian Tire, was introduced at the company’s dealer show last September. It’s part of CTC’s strategy to go more upscale with everything from designer décor items by Laura Ashley and paint by Pratt & Lambert to more expensive bicycles and higher-end patio sets. The Persona line includes dinnerware, glassware, flatware, table cloths and pot holders, specialty gadgets and utensils and cookware, including an eight-piece stainless steel copper bottomed cookset. According to Canadian Tire Retail president Mark Foote, the idea for the line draws inspiration from Target Stores in the U.S., which goes more upscale than its chief competitor, Wal-Mart.

Besides being available in CTC stores Canada-wide, a selection of the dinnerware, cookware, small appliances and flatware are also being made available on CTC’s website: www.canadiantire.ca.

This past winter alone, Home has put on its “Pro Show” contractor appreciation events in Nanaimo, BC, Calgary, AB, Saskatoon, SK and Moncton, NB. In each location, the local Home Hardware dealers promote the event together and pull their respective trade customers to a local venue, such as a community hall. The Pro Show in Moncton was the first time for that city, and attracted almost 1,000 contractors and builders, who were bussed in from as far as four hours away.

Not only do the events build sales of innovative products featured by exhibiting vendors, but they build awareness among the trades of the size and clout of Home Hardware.

“Contractors don’t necessarily realize how big Home Hardware actually is until they come out to these shows and see the kind of buying power we have,” says Joe Jacklin, contractor communications and marketing manager at Home Hardware.

About eight Pro Shows are held each year, usually in either the late Fall or Winter. “Next year, our goal is to have them all in the Winter, before the dealers come up to their really busy season,” says Jacklin.

Home has used the addition of the Beaver stores as part of its strategy to move beyond the image of a neighbourhood hardware store (“Home of the Handyman”) and really leverage its strength as a chain with a strong network of home centres and building centres (“Help is close to Home”). With almost 400 of these stores, now all operating either as Home Hardware Building Centre (for home centre-type stores) or Home Building Centre (for more traditional yards), Home’s building centre dealers represent the single largest buying group in the country.

Montréal, QC – Réno-Dépôt‘s president and CEO has only been on the job since last October, but Sylvain Toutant has already been distinguished as one of Canada’s leading young business leaders.

Toutant has been named to this year’s Top Forty under 40, organized by Caldwell Partners and the Globe and Mail. It ranks winners on vision and leadership, innovation, achievement, community involvement and strategy for growth. More than 1,200 candidates were considered.

Toutant started with Groupe Val Royale in 1987, when it was a chain of seven traditional building centres in the Montréal area. Five years later, Toutant was part of the team that re-invented the company as a big box chain, under the Réno-Dépôt name. It currently has 14 Réno-Dépôt stores in Québec and five Building Box outlets in Ontario. A sixth will open in Windsor, ON on May 18.

Another event, being planned in Montréal for sometime in late Fall of this year, is already getting registrations. (More details to come on this one! – Michael)

According to a CBC story last Friday, Tembec CEO Frank Dottori regards the U.S. action as nothing more than a ploy to reduce the market share of Canadian softwood.

“The United States is contemptuously disregarding the principles of free and fair trade embodied in NAFTA in supporting this course of action. The action is tantamount to expropriation of our markets. This is a violation of the Free Trade Agreement and we are seeking compensation,” he was quoted as saying.

In future appeals, Dottori expects that bi-national NAFTA panels will find the imposition of countervailing and anti-dumping duties do no comply with U.S. law. In Tembec’s case, those duties will total 29%, slightly higher than the 27.22% average across the industry.

Shades of Wal-Mart! Loblaw Cos. has announced it will expand its President’s Choice brand to include everything from hardware, paint, home office supplies and even gasoline as it searches for ways to expand its market share in a mature grocery industry. (And ready itself for a possible takeover down the road by Wal-Mart? Just wondering – Editor) Loblaw wants to increase sales by 8-9% annually over the next five years. In Western Canada, as much as 35% of its superstores are already devoted to general merchandise.

Appliances were the fastest growing category for Lowe’s Cos. last year, with sales up 30% in 2001 to US$2.5 billion. Appliance sales rose US$582 million and made up 11% of the company’s $22.1 billion in total sales last year.

Hudson’s Bay Co. has taken steps to consolidate its brand among its three banners, The Bay, Zellers and Home Outfitters, and present them as different parts of one company serving customers through “multiple lifestyle formats.” Discrete credit card and rewards programs are now combined under the HBC brand, a strategy that will translate on the company’s web presence, www.hbc.com, as well.

A strong economy and a mild winter were factors that gave Emco Ltd. a net income of $3.8 million, compared with a net loss of $4 million for the same period in 2001. Sales for the quarter were $273 million, an increase of 6%.

The Zellers Friends of the Family Fund has made a donation of more than $2.2 million to the Canadian Cystic Fibrosis Foundation. The funds, which will help fund research in cystic fibrosis, were raised through Zellers employee and customer efforts.

Wal-Mart continues to do battle with unions. This time, it will stand trial in more than 15 locations in Texas, and California to face federal complaints by the United Food and Commercial Workers Union for violating workers’ rights. In an effort to curb complaints of safety violations, workers in College Station,TX were reportedly told that any fines imposed for these violations would adversely affect their store bonuses. In Lake Elsinore, CA workers who sought union representation were allegedly subjected to threats of job loss by company officials.

Americans are loosening their purse strings, which is helping turn the economy around, says the U.S. Commerce Department. Consumer spending rose 0.4% last month to $7.29 trillion after a 0.6% in February.

Manufacturers saw inventories level off and 25% of them expect to ratchet up their output in the months ahead, says the April Quarterly Business Conditions Survey from Statistics Canada. The transportation equipment, primary metals and wood product industries are particularly upbeat.

An incredible morning meeting with buyers from Canada’s top home improvement retailers! Only 20 spaces left and the event is full!! If you haven’t already signed up, click here for all the information.

Réno-Dépôt wants 20%-25% of the GTA – “That’s our main focus,” says Toutant. Expansion farther west, or even in the Maritimes, is at least three years out, until Ontario expansion has reached an adequate level. “We’re really busy building critical mass in Ontario.”

According to Celine Gamache, vice-president, marketing and business development for SHG, the move reflects SHG’s efforts to consolidate effectively its Sodisco division, which serves Québec from Victoriaville, and the London, ON-based Howden division, that serves the rest of Canada. “Our aim is to bring people back to the new reality, which is one company. By bringing people together in one show, it reinforces our role as a true national distributor,” she says.

The event will be offered in two languages, though details of how that will be handled have not been worked out. Gamache expects either simultaneous translation, or combined French-English presentations, or a combination of both. Some seminars may be offered twice, once in each language.

The company will send out a mailing to its dealers and vendors by mid-May confirming details of the new show. She would not speculate on how many dealers are expected to attend the new combined event.

The president and CEO of Hudson’s Bay Co. pointed out that households grew 24% in the last decade, while the population grew by only 14%. This growth is fuelling tremendous demand for home improvement and décor products, a trend he admits HBC was slow to jump on. Like other department store chains, too much emphasis was placed on high-margin fashion, while consumers were pouring dollars into their homes.

But he expects to capture market share, especially through expansion of the company’s specialty retail format, Home Outfitters. There are currently 22 open across the country, with 16 more openings planned for this year.

Meanwhile, both The Bay and Zellers have expanded their big ticket offerings in electronics, appliances and even RTA furniture. In an interview with Hardlines, Heller said the new Erin Mills Zellers store in Mississauga, ON is a prototype for sales of high-end products, such as $3,500 wide-screen televisions and quality patio furniture. While the Zellers hardware department will continue to offer convenience assortments, the range of home and lifestyle products will continue to increase.

For the second quarter ended February 28, 2002, Goodfellow Inc. had a net profit of $111,000, compared with a loss of $224,000 in last year’s second quarter. Sales reached $101.3 million, up from $91.5 million a year earlier. Mild winter conditions in eastern North America, low interest rates and a strong housing market helped buoy up sales. Sales for the first six months were $210.9 million, up 6% from $198.8 million a year earlier, while net earnings rose to $1.3 million, up from $1.1 million.

Home Depot‘s largest Expo Design Center yet opened on Saturday in Chicago. The 137,500-sq.ft. outlet will be the largest of the five stores in the Chicago area – and the first within the city limits. This urban store will feature more high-end items, including brand names such as Versace.

Wal-Mart is introducing used car sales, using the name Price 1 Auto. The company plans to lease property adjacent to five of its stores in the Houston, TX area to a Connecticut-based car sales company for six months.

Fuelled by a strong housing market in both Canada and the U.S., Masonite International‘s Q1 net income rose to US$16.1 million, compared with last year’s US$8.7 million. Sales were up 19% to US$380.6 million.

Weyerhaeuser Co. is part of a group of companies that has launched an ad campaign in retaliation to duties being imposed on softwood lumber being exported to the U.S. The group, which includes Home Depot and Lowe’s Cos., is running the ads in magazines and newspapers in the U.S. and Canada. Called “Friends and allies for more than 100 years. Why not now for lumber?,” the campaign, was launched last Wednesday.

Ikea will concentrate more on branding itself, with plans to do more to promote the names of its designers. Different furniture lines at Ikea currently bear the names of the designers of those lines. The company sells 10,000 items in its stores worldwide, including 23 in North America.

The Hoover Co. has entered into a strategic alliance with Friendly Robotics to jointly design and develop a robotic vacuum cleaner for residential use. Friendly, a privately held robotics concern based in Israel, is best known for its Robomower line of fully automatic lawn mowers, designed for domestic lawns.

An incredible morning meeting with buyers from Canada’s top home improvement retailers! If you haven’t already signed up, click here for all the information.

St. John, NB – Kent Building Supplies is currently expanding its presence in Woodstock, NB with a larger 55,000-sq.ft. outlet that will replace an existing 12,000-sq.ft. location. This will be Kent’s second refurbishing of an existing location, to fit a “mini” big box format. And in Rothesay, NB a 60,000-sq.ft. outlet is replacing an 11,000-sq.ft. store.

Kent already has seven big boxes in addition to its 12 traditional format stores. The last one was opened in St. John’s, NF. The store, in Mt. Pearl, is the second big box for Kent in that market. Kent will direct its energies to these mid-sized stores over the next couple of years, when another five are reportedly due to be developed.

Potential sites include existing stores and new markets for Kent within NB, NS and NF. Kent will likely stay out of PE for now, as fellow ILDC member Schurman holds sway in that province.

Vancouver, BC & Boucherville, QC – Under the aegis of Al Cheney, Rona’s big box stores in Ontario will now be more in sync with the Rona Revy stores in Western Canada. These include four former Revy stores, plus the former Rona Home Solutions store in Brampton, ON. All of them now bear the Rona Home and Garden banner. Together with the 10 Western stores, Cheney, who was appointed vice-president operations for Rona’s warehouse-style stores at the beginning of the year, oversees 15 stores in total.

Until now, the Ontario stores have been getting input from both the West and the Boucherville, QC head office operation. Cheney admits the big boxes had been “rudderless,” but now management of these stores will be more focused.

“Our challenge is to standardize operations,” says Cheney. “We’re taking best practices, not just from the West, but from the entire company, to implement to all our stores.” Emphasis will be placed on staff training, maintaining a strong in-stock position and keeping the stores bright and clean.

Part of the realignment of Cheney’s division includes a remerchandising of the Ontario stores, in many cases to put assortments more in line with Rona’s Boucherville, QC distribution mix. The store in Erin Mills, ON represents the latest merchandising innovations for the chain, says Cheney. It includes a re-vamped tool corral and more emphasis on seasonal products.

The stores in the Ottawa area (a second one is currently under construction there), fall under the Québec division, which is headed by Michel Robin, vice-president operations for Rona’s warehouse stores in francophone markets. Both Robin and Cheney report to Pierre Dandoy, executive vice-president for big box stores.

Georgia-Pacific Corp. reported first-quarter net income before unusual items of US$70 million, compared with a loss from continuing operations, before unusual items and goodwill amortization, of US$23 million during the same period last year. The company’s building products manufacturing and distribution operations reported first-quarter profits of US$74 million, up from a loss of US$24 million.

Sales in March for Sears Canada were down 2.8%, while sales for the first quarter were down 1.6%. Strong sales last year were attributed to sale pricing on excess inventory, hence a slight downturn in this year’s numbers. Profits for 1Q 2002 are actually up before extraordinary items; however, the company ended up recording a net loss of $115.9 million, due in part to a write-off on Eaton’s stores and on the sale of a corporate jet.

The investment status of Hudson’s Bay Co. has been revised to junk-level status, a reflection of poor profitability. Bay Street is wary of retail stocks in general and department stores in particular, as consumers slowly loosen purse strings.

Remodelling costs for its Canadian stores affected first-quarter results for Sears, Roebuck and Co., resulting in a 38% drop in net earnings. Net income fell to US$110 million, compared with US$176 million a year earlier.

Key buyers from some of Canada’s leading companies will gather on May 15 to explain how to approach their buying teams with new products and programs. This half-day seminar is ideal for any company attempting to make inroads with Canada’s top retailers – and for anyone already supplying them who wishes to sharpen their focus.
So far we’ve confirmed:
* Suzanne Morgan, Lead Buyer for décor products at Canadian Tire Corp.
* Luc Lemonde, Vice-President Merchandising, Sodisco-Howden Group
* Peter Vernon, Merchant for the Hardware Department (Tools and Hardware) at Home Depot
* Bernie Schneider and Dan McMurdy from Ace Hardware Canada
* James Jones, General Merchandising Manager for Réno-Dépôt and Building Box
* Buyer from Home Hardware Stores (tba)

We’re filling up fast – so book today!
Only $149 for subscribers, $249 for non-subscribers (+ appropriate taxes).
To register, call Nancy Wright at 416.489.3396, or email her at: nancy@hardlines.ca

Want to sponsor this exciting event? Call Beverly Allen, Marketing Manager at (416)489-3396 or email: bev@hardlines.ca.

The Canadian operation, under president Annette Verschuren, is part of the International division, which grew by 18%. While the Canadian division does not break out its sales, Home Depot grew its top line in Canada by an estimated 21% in 2001. Sales went from $2.78 billion in 2000 to an estimated $3.36 billion last year, putting it slightly ahead of Canadian Tire’s hardware and home improvement sales, estimated at $3.21 billion last year, and ahead of Home Hardware and Rona Inc.

The company also increased its store count over the past year. In 2001 it built 11 stores, for a total of 78 by the end of the calendar year.

Edmonton, AB – House of Tools, a privately held specialty chain with hardware stores in Alberta, British Columbia and Saskatchewan, has entered into an agreement to sell to Western Tool Supply. The California-based chain has provided a letter of intent to purchase House of Tools. The offer is subject to due diligence.

Western Tool Supply has a similar product mix to the Canadian retailer, namely a focus on hand and power tools, accessories and fasteners aimed at the contractor and industrial market. It has 30 stores throughout Washington, Oregon and California, plus one outlet in Idaho. And like House of Tools, it has a strong web presence, selling tools and fasteners online. House of Tools, which has been in business for 40 years, established online sales in 1998, and now ships across the country.

If the deal goes through as planned, Jon Nobleman, one of the two acting partners in the business, will continue to operate House of Tools. The other acting partner, Doran Viner, is expected to retire.

Sales by House of Tools were an estimated $57 million in 2001, with almost two-thirds of that going to contractors and professionals. Western Tool Supply, also a private company, does not disclose its sales.

“Over the last 11 years these companies have been together, there really hasn’t been consolidation until now,” he said. Sodisco bought up London, ON-based D.H.Howden & Co. in 1990. The company struggled with defining the powers of two buying teams ever since.

But since Wintermans took over last year, he has been committed to streamlining operations, despite two disparate cultures working out of three offices. The buying functions have recently been moved from Sodisco’s warehouse in Victoriaville, QC and the Howden distribution centre in London into its corporate headquarters in Montréal.

Wintermans pointed out that during his tenure, SHG has improved its picking and packing efficiencies by 20%-25%. Also during this period, inventories have been reduced by 25%, while fill rates have improved.

Doman Industries Ltd. managed to make its semi-annual interest payment on its outstanding US$388 million 8.75% senior unsecured notes. The original deadline for the payment was March 15, 2002. The company will continue its ongoing operations and the board of directors will continue to review and consider strategic and restructuring alternatives.

Sears Canada will open a Furniture, Appliances and Home Improvement store in Toronto’s west end in early Summer 2002. The 52,000-sq.ft. store will be devoted exclusively to furniture, décor, major appliances, and home improvement products. Sears has 37 such stores across the country so far, 18 of them in Ontario.

A developer who works closely with Target Stores in the U.S. says the department store chain looks at Canada with growing interest, especially since Wal-Mart is so successful here. He was speaking at a real estate conference here.

Sales for Wal-Mart during March reached US$21.489 billion, up 14.5% over March 2001. Year-to-date sales were US$38.696 billion, an increase of 15.0%. The Wal-Mart division’s sales were US$13.947 billion, up 17.0%. Same-store sales for Wal-Mart stores were up 10.7% year-over-year; for Sam’s Club the increase was 4.1%.

Steve Kennedy has left his post as general manager of Maytag Canada to join Newell Rubbermaid as group general manager in Mississauga, ON for its picture frame division, which comprises Intercraft, Burnes of Boston and Connoisseur; and its cookware division, with Wearever, Mirro and Calphalon. (905-275-3705)

At its latest annual general meeting, the Canadian Hardware and Housewares Manufacturers Association announced its new board of directors. Newly elected are: Tim Hunt, general manager of Emerson Tool Co. Canada … Bob Kendall, general manager of Ipex Homerite Products … Stewart Mathie, vice-president consumer products for Drummond Metal Products. Continuing their involvement with board are: Tony Duffy, vice-president sales and marketing for Tremco Inc. … Gerry Byle, general manager of Honeywell Consumer Products … John Seymour of Hamilton-Beach Proctor Silex, was re-elected as treasurer … Fred Pierce of Patrick Plastics remains past chairman. The board in turn has elected its executive: Pierre Vachon, general sales manager at Sico Inc. enters his second term as CHHMA chair … Jim Rotz of Pyrene Corp. is first vice-chair, Wendy Hanson of Varimpo Products is second vice-chair … Retiring from board: Murray Irvine of Energizer Canada and Gary Lawless of T.S. Simms (who is also retiring from the industry in June after 40-plus years with Simms). (416-282-0022)

Residential construction will continue to drive housing starts, says Statistics Canada, as building intentions for February remained unchanged from January’s 11-month high. The value of building permits for commercial construction was down 10.8%, however, so the total value of building permits issued by municipalities was down 4.2% in February.

Consumers continue to spend, but at a more modest pace, indicate the latest numbers on retail spending from the U.S. Department of Commerce. Sales grew to US$297.34 from February to March, as the country continues to climb out of last year’s recession.

An incredible morning meeting with buyers from Canada’s top home improvement retailers!

Key buyers from some of Canada’s leading companies will gather on May 15 to explain how to approach their buying teams with new products and programs. This half-day seminar is ideal for any company attempting to make inroads with Canada’s top retailers – and for anyone already supplying them who wishes to sharpen their focus.
So far we’ve confirmed:
* Luc Lemonde, Vice-President Merchandising, Sodisco-Howden Group
* Peter Vernon, Merchant for the Hardware Department (Tools and Hardware) at Home Depot
* Bernie Schneider and Dan McMurdy from Ace Hardware Canada
* James Jones, General Merchandising Manager for Réno-Dépôt and Building Box
* Buyer from Home Hardware Stores (tba)
Space is very limited for this incredible event – so book today!
Only $149 for subscribers, $249 for non-subscribers (+ appropriate taxes).
To register, call Nancy Wright at 416.489.3396, or email her at: nancy@hardlines.ca

Want to sponsor this exciting event? Call Beverly Allen, Marketing Manager at (416)489-3396 or email: bev@hardlines.ca.

Brooklyn, NY – Last week Home Depot opened a 61,000-sq.ft. warehouse-style home centre in a strip mall here. Depot is calling this its “urban neighbourhood” store, and plans to open another, a 77,000 sq.ft. outlet on Staten Island, NY in September, and a two-story, 80,000-sq.ft. unit in the Lincoln Park section of Chicago in January 2003. There are no plans in to bring the concept to Canada until it has been tested for one or two years in the U.S.

Its new mini warehouse is L-shaped and has a 3,500-sq.ft. mezzanine for its DesignPlace home décor department. It stocks about 70% of the 45,000 to 50,000 items a typical Home Depot carries. Company officials said its mix gives more space to better-selling items. For example, a typical Depot has 11 bins of light bulbs; the mini warehouse has seven, but doubles the facings of fast-turning bulbs.

With shorter racking and narrower aisles, the 32-section store includes a scaled down selection of small and large appliances, and does not have an outside selling area for lawn and garden. It doesn’t carry pressure-treated lumber, stationary tools or exterior paint, all of which can be ordered from nearby larger Home Depots.

On the other hand, laundry and cleaning products have been greatly expanded and are displayed on white racking.

Several categories – such as flooring and faucets – are sold mostly on special-order. This store is the first in the chain to offer customers an online kiosk that can link them to the database of Home Depot’s Maintenance Warehouse commercial division.

Another 160 “other” delegates, boosted the delegate ranks even further. These included about 80 representatives from the Wood Products Group, an organization dedicated to promoting wood use that held its annual general meeting in conjunction with the show.

The value of the show has just been assessed by the city of Moncton itself to help it evaluate the Coliseum’s proposal for a $3 million addition. An impact study has revealed that the show accounts for an infusion of upwards of $2.3 million into the local economy. About 90% of attendees at the show are from out of town, resulting in more than 1,200 booked hotel rooms.

Jones now divides his time between Montréal and Brampton, with a lot of travel to Windsor, ON in preparation for the next Building Box opening, which will take place in that city around June 1.

The restructuring is part of a larger initiative by Réno-Dépôt’s new CEO, Sylvain Toutant, who took the helm back in November, 2001. Toutant cleared out almost 70 managers and channel last month in an effort to streamline the chain of command in the firm and to get management closer to the customer.

TruServ Canada Cooperative Inc. will hold its national merchandise market April 22-23 at the Winnipeg Convention Centre. More than 500 vendors will showcase their wares to 600-plus member dealers from across Canada.

GSW Inc. has bought American Water Heater Co. in Johnson City, TN from Southcorp Ltd. According to GSW, this acquisition makes it the third-largest water heater manufacturer in North America. The move is part of the company’s strategy to grow its core businesses. AWHC and GSW Water Heating, based in Fergus, ON, will operate as separate companies.

84 Lumber‘s ambition to be the U.S.’s largest contractor-oriented building centre company came closer to reality last week when it opened another 20 stores, bringing its total to 434. Most of the stores are former Payless Cashway outlets.

Johns Manville is converting its production of fibreglass insulation to an entirely formaldehyde-free formulation. The company began using a resin-based binder in all its insulation in the U.S. beginning in March, and will start making the switch in Canada by August.

MFG2D Marketing Ltd. will merge with Thericon Inc., a company founded by industry veteran David Mackenzie, whose background includes CanWel, Homecare Building Centres and, most recently, Tim-BR-Marts. MFG2D is an electronic ordering system that allows independent home improvement retailers to buy directly from participating manufacturers without having to rely on a distributor.

CORRECTION: When we reported how strong Sico‘s results were a couple of weeks ago (so before the glasses were fixed, right? – Editor), you might have wondered what we were talking about. Seems we missed a decimal place when stating 2001 sales. They were actually $244 million. – Michael

Chris Taylor has joined Cameron Ashley Building Products as marketing and communications manager, based in their Mississauga, ON office. He was formerly with a small marketing agency. (905-677-9471)

WHAT: Hardlines Meet the Buyers Seminar
WHEN: May 15, 2002 from 8:30 a.m. to 11:30 a.m.
WHERE: Four Points Sheraton Hotel, Dixie Road and Highway 401, near the Toronto International Airport

We are delighted to bring together key buyers from some of Canada’s leading companies to tell us how to approach their buying teams with your new products and programs. Ideal for any company attempting to make inroads with Canada’s top retailers – and for anyone already supplying them who wishes to sharpen their focus. So far we’ve confirmed buyers from Home Hardware, Home Depot, Sodisco-Howden Group and Ace Hardware Canada. More details to come!

Cost for subscribers is only $149, for non-subscribers it’s $249. To register, call Nancy Wright at 416.489.3396, email her at: nancy@hardlines.ca.

Want to sponsor this exciting event? Call Beverly Allen, Marketing Manager: bev@hardlines.ca.

Gone are Keith Knight, who had handled garage door openers and miscellaneous hardware; Gary Curtis, an assistant buyer; Graham Teasdale, Lew McGinnis, in charge of air tools; Phyllis Johnson, in logistics and re-buying; Larry Walter, in traffic and logistics, and Susan Banting, another buyer. In addition, two clerical positions were terminated.

Eric Scrafield, who had been national business manager for hardware, has been named national business manager for bed and bath. Replacing him as new national business manager for hardware is Rob McKenzie, formerly with the major appliances group, and before that a power tool buyer for several years.

Reporting to him are: Daryl Villeneuve, who has moved over from housewares to handle hand tools, including garage door openers and air tools, merging roles of Keith Knight and Lew McGinnis; Bill McQueen, who is handling mechanics’ tools; Bob Masich, who stays with power tools; Jill Brown, in charge of outdoor power equipment; Greig Carson, who expands his portfolio to include water products, in addition to AC; and Cindy Jardin, adding in bath accessories to her existing paint, wallpaper and décor portfolio.

Other changes within the hardware department include the naming of Kent Pelletier as retail ad marketing manager, Roy Schuette as category business manager for hardware and Nezam Rampersad as category marketing manager for hardware.

Anticipating a good year ahead, SHG president and CEO Jos Wintermans says the new structure will make the company better able to deal with vendors, “and will help us be more competitive.”

Sodisco-Howden recently completed the acquisition of the supply business of Marchands Unis‘s hardware and building supply dealers. “We’re busy integrating customers and shipments from our Victoriaville distribution centre,” Wintermans says.

The hardware stores taken over from Marchands Unis comprise 30 Eureka dealers, 37 Bâtitout, and 41 Ferplus Quincaillerie dealers. Marchands Unis’s building supply dealers under the Chalifour banner will be combined with SHG’s Servimat building supply business. The combined sales of the two banners is expected to drive SHG’s wholesale shipments of building supplies in Québec to more than $200 million this year.

The suspects, former forest management supervisors who lost their jobs in the wake of the recent countervailing duties, have been shipping contraband to the U.S., primarily Oregon and Rhode Island. The drug that has captured the special attention of the DEA in Washington, DC is tetrabozocyllum (TBSC), known on the street as “bozo” or “clown candy,” a high grade form of marijuana grown hydroponically in abandoned Chimo Charlie lumber yards throughout Vancouver’s west end.

The profits from the illicit drug racket are reputedly being sent overseas to Al-Qaida cells in mountain regions of Ruritania and Pottsylvania. Bush has put the FBI on the alert from a couch in his living room.

The Canadian operation, under president Annette Verschuren, added 15 new stores last year for a total of 78 by the end of 2001. Sales grew by an estimated {>%, from $2.78 billion in 2000 to an estimated $%# billion in 2001. (damn typos! What happened to my glasses? – Editor)

Home Depot in the U.S. is trying out stand-alone garden centres aimed at wholesale and DIY users. The project, which is being launched with little fanfare, has been called “Project Greenback.” Home Depot has picked three sites so far in the Atlanta area, two of them near existing Home Depot outlets. Construction of the 12,000-sq.ft. stores is expected to begin soon.

Rona Inc. announced its support last week of a fundraising effort on behalf of Accueil Bonneau. The campaign hopes to raise more than $400,000 to assist the hundreds of homeless people fed, clothed and sheltered each year by the 125-year old centre.

Benjamin Moore has expanded the rollout of its branded stores across Canada and will count 300 stores within the next few months, says Alistair Linton, now director of retail development for all of North America. The affiliation program for independent paint dealers began in 1999.

BS Building Supplies in Deuxpieds à Gauche, AB has purchased three former Lumber Dudes stores in the Vancouver area after owner Bill Shitely won at bingo on Saturday night. BSBS reportedly paid $143.62 for the sites. Shitely will open the stores with a clearance sale on the excess inventory of used fluorescent lights and hydroponic plant food found in the stores.

Carlo Rossi has been appointed director of marketing at New Market Group in their Associated Food Distributors division. AFD is a food service buying group for the hospitality channel in Canada. Its 35 shareholder members represent more than 120 warehouses across Canada, with sales of more than $4 billion. (905-898-5383)

Exchange-A-Blade has made the following key appointments: Don Haliburton has been appointed general manager, reporting directly to Rob Forbes, president of Exchange-A-Blade. Haliburton brings many years of experience in both public accounting and private industry. He replaces Bob Nelles, who is retiring … Sushila Goundar will assume the responsibilities of controller … Amir Fallah has been named inventory controller and assistant plant manager … Gerry Lees, formerly Ontario and Atlantic sales manager, has retired to pursue other interests. (604-526-4595)

Shell Busey was awarded the BSDA of B.C. Industry Merit Award, given by the association at its Gala awards night on March 3, 2002. A past chairman of the association, Busey is best known as a television and radio personality whose programs are broadcast across the country. (604-513-2205)

After dropping 15.8% in January, U.S. home sales surged ahead by 5.3% in February. Single-family starts reached 875,000 units seasonally adjusted, up from 831,000 in the previous month.

Ace Hardware Canada has finalized a deal with United Farmers of Alberta to supply it with hardware.

The deal, aimed at expanding UFA’s focus beyond strictly farm products, was the result of trials in High River and Claresholm that began in mid-2001 after Ace beat out other suppliers for the program. “We refurbished and tested in two stores, and based on the test results, UFA wanted to move forward and expand their hardlines assortment,” says Dunc Wilson, vice-president of merchandising and marketing for Ace Hardware Canada.

The program will involve all 34 of UFA’s farm supply stores throughout Alberta. The co-op retailer had 2001 sales of $833.5 million in farm supplies, petroleum and other products to 110,000 members. The arrangement is a supply deal only, says Wilson, and does not involve adoption of the Ace banner.

“It just shows that Ace is going to stay. The market is competitive, but Ace is doing the right things to stay here,” Wilson adds.

UFA tried another partnership back in 2000 when it formed a joint venture with AgPro Grain, a subsidiary of Saskatchewan Wheat Pool, for the sale of crop input products. However, the joint venture was dissolved a year later.

This year’s show, to be held August 11-13 at McCormick Place in Chicago, will fit into only two buildings, shrinking exhibition space from a high of 1.2 million sq.ft. in three buildings down to under 900,000 sq.ft. this year. But costs will also be trimmed, in an effort to make the show more affordable for delegates and exhibitors alike. Drayage costs will be cut, while booth prices were reduced by a dollar a square foot in an early bird special that ended November 1, 2001. However, that special will be repeated at next year’s show. Advertising rates have been cut, too, and the show will again release the attendee list at no charge to qualified exhibitors for pre-show mailings.

For anyone coming to Chicago for the show, hotel rates in the city are being rolled back at least 25%.

Duane Goodwin, merchandising vice-president, who headed up the Home Depot contingent, says the venue was their idea, and noted it’s a strategy they’ve used at other shows. The first time it was used in Canada was during the Western Show in Vancouver in the early 90s. At that time, the show got a lot of criticism for its apparent preferential treatment of one retailer over the others.

Ever in search of new products, which he called “our retail lifeblood,” Goodwin reported that the venue worked well for his people. “It’s been a very good show. It’s afforded a lot of vendors [the means] to find us.” Will he repeat it next year? “Not sure,” he replies succinctly.

“The Interlink Conference is an excellent opportunity for like-minded businesses to share ideas and learn from each other,” says Paul Straus, vice-president and CEO of Home Hardware Stores Ltd. “Each member of Interlink heads up a retail organization that is member-focussed and runs on the cooperative business model. We have unique challenges and opportunities that transcend the markets in which we each operate.”

Formed in 1985, the group meets annually to share unique perspectives and ideas, and develop mutually beneficial business strategies. Total retail sales of Interlink members in 2001 were in excess of US$35 billion.

McMunn & Yates Building Supplies Ltd. has purchased Norwest Do-it Center in Thompson, MB from Prendiville Industries. The store is 10,000 sq.ft. in size and serves both the retail and contractor markets in northern Manitoba. This is the ninth retail outlet for McMunn & Yates, which also has a truss plant, a flooring store and a roofing and drywall outlet, and had sales of about $30 million in 2001.

Canadian Tire opened a 106,000-sq.ft. distribution centre last week in Kirkland, QC, near Montréal. The site employs about 75 people and will support daily shipments of automotive hard parts and accessories to CTC’s 133 stores in Québec and the Maritimes.

Matco-Ravary Inc. announced strong growth in its first quarter with sales up 13.3% to $12.1 million. Greatest growth was with contractor customers, up 15%, while retail trade was up 11%. The operating loss typical of the company in the first quarter was reduced from $277,210 in 2000 to $65,678.

Sico Inc. reported sales for fiscal 2001 of $22.4 million, up 8.9% from a year earlier. The company posted earnings before goodwill and amortization of $9.3 million, up 19.6% from $7.8 million a year earlier. Net earnings reached $8.6 million, up 13.7% from $7.6 million in 2000.

Home Depot has doubled its number of stores in Mexico with the acquisition of Del Norte, a four-outlet chain in Juarez. The deal is subject to approval by the Mexican government. Del Norte’s CEO, Eduardo Cantu, will join the team in Mexico. Home Depot is also building a store on a newly acquired site in Mexicali, and work will begin soon on another in Tijuana. Both are scheduled to open by the end of 2002. Home Depot entered Mexico last year with the acquisition of Total Home, a four-store chain in Monterrey and Mexico City.

Scotts Co. has acquired the Lawn Co., a privately held lawn care company in Boston. This boosts the Scotts LawnService unit to operations in 35 U.S. markets, reputedly making it the second-largest player in the lawn care business after ServiceMaster.

Sales by wholesalers were up 2.0% to $3.3 billion in January, according to Statistics Canada. Lumber and building materials were especially strong, gaining 5.8%. Hardware, metals and plumbing were up 0.9%.

After slow growth in 2001, manufacturing shipments in Canada climbed 3.1% in January, says Statistics Canada. Manufacturers trimmed their inventories by 0.5% that month, the eighth consecutive decline.

A grand opening on March 24 marks the fifth opening by Aylwards Home Hardware in Newfoundland. The store, in Gander, was taken over last year from an existing Home Hardware dealer and had a soft opening on December 3.

“We moved to Gander because Home Hardware hasn’t had a store in that market for four years, and an opportunity came up for us to buy something,” says Ron Aylward, general manager. The 12,500-sq.ft. outlet follows the purchase last year of an existing Home Hardware in St. Lawrence. Aylwards has additional stores in Placentia, Marystown and Grand Bank.

Aylwards had sales of $8.5 million last year, but Ron Aylward expects the Gander store to lift that to about $10 million in 2002. He also sees the potential for future acquisitions: “Oh, yes, if any good opportunities come along, we’ll take a look at them.”

Meanwhile, Rona now expects to open its Mississauga site for a Rona Home and Garden by September. Construction of the Kingston store, which was to have opened last summer, has been delayed and will begin construction sometime this year. But with the seeds of Western expansion sown by the acquisition of Revy, Rona believes there’s room for more big boxes in the West, especially Alberta.

Home Depot Canada, already well-ensconced in Southern Ontario, is putting a lot of focus on the Québec market in 2002. It plans to double the number of stores in that province to a total of 12 by the end of this year. One of those is in Gloucester, where Rona plans to open a Regional store later this year.

Geoff Wilson, vice-president industry and investor relations for Loblaw’s, says eco-friendly substitutes can work currently for about half their needs. But by Spring 2003 he anticipates organic alternatives for virtually all of the chemical pesticides currently carried in its 440 garden centres across Canada.

“We believe, and so do our customers, that there is an abundance of alternatives out there” that can be used for domestic use, says Wilson. Both existing chemical-based pesticide suppliers and new, innovative companies are developing the alternatives Loblaw’s is looking for.

Using the slogan, “Chemical Pesticide Free by 2003,” the switch will be coupled with a strong educational component that includes educational handouts to increase consumer awareness.

“Lawn and garden is a growing segment and Loblaw’s is a significant player in this sector,” says Wilson.

Industry commitment got a symbolic push, at least, at the large stand of the German association of hardware retailers, BHB. Virtually all the materials used in the booth’s construction – everything from decking to hardwood meeting tables – were made from materials from certified forests. (The stand was even handing out chewing gum made with treacle from certified forests in South America).

The message is getting through to vendors. Tramontina featured a full line of hammers with certified wood handles. “The aim has been to realize that by buying this kind of product, it will not destroy the world,” says Felisberto Yorges, director of Tramontina Garibaldi. He points out that companies like B&Q in the U.K. are committed to sell only certified forest products. In fact, Castorama and OBI have similar commitments in France and Germany, as do Home Depot and Lowe’s in the U.S.

A number of companies have been going to the Cologne show one year, and the National Hardware Show in Chicago the next. Bosch and Black & Decker have led this movement and neither was at Cologne last year. Interestingly, B&D was not featured at the show again this year – but DeWalt was. It took up a huge exhibition space, reminiscent of years past. But both Bosch and B&D were more sober, less glitzy in their presentations.

Some products that caught our eye:
Compact fluorescents – but really compact, with cf chandelier lights from Megaman … Heavy duty fluorescent work lights from Velalamp Italy … Four-LED halogen flashlight from Acculux with 10 hours of operation. When it’s time to recharge, just pull off the plug cap and plug the connectors into any household socket, without the need of a separate charger … Lenharz featured a quality line of re-usable paint pads for corners, edges and wall application, plus a compact wallpaper application system, complete with glue/water trough, cutter measuring device … Bondex was demonstrating paint designed especially for painting women’s breasts – at least that’s what it looked like from the demonstration. Any actual benefits of the product, unfortunately, were lost on most passersby … A block safe with alarm that can be opened by remote control from SimonsVoss … Air cushion cleaner for outdoor patios and decks, from Karcher for use with its power washers.

The dates for next year’s show, which has been renamed Practical World, are March 9-12, 2003.

TruServ Canada Co-operative Inc. will open four new V&S Options stores by May 1, 2002. They are in Almonte and Barry’s Bay, ON, and Morden and Sundre, MB. The first V&S Options store opened in Picture Butte, AB in September 2001.

Doman Industries has announced that it did not make its scheduled March 15, 2002 semi-annual interest payment on its outstanding 8.75% US$388 million senior unsecured notes maturing 2004, blaming a soft market, uncertain pulp prices and the potential for a big hit from softwood tariffs. The company has 30 days to make payment before defaulting.

Wal-Mart Stores will assume a 6.1% stake in Japanese supermarket chain Seiyu Ltd. and will pay six billion yen (US$46 million) for the stake with an option to take majority control. Both companies will continue to look for acquisitions in Japan.

Hudson’s Bay Co. will add 16 more Home Outfitters locations across Canada this year. This will bring the total number of these kitchen, bath, bed and home décor “superstores” to 38, each averaging 34,000 sq.ft.

Results from Canada’s latest census reveal that the population has grown only 4.0% since the last census in 1996. The census counted 30,007,094 people in the country on May 15, 2001. Growth was strongest in Alberta (+10.3%), Ontario (+6.1%) and British Columbia (4.9%). Concentration of population in urban areas continues, especially in four urban regions: the Golden Horseshoe in Southern Ontario; Montréal and environs; British Columbia’s Lower Mainland and southern Vancouver Island; and the Calgary-Edmonton corridor. In 2001, 51% of Canada’s population lived in these regions, compared with 49% in 1996.

With 3,880 suppliers from 59 countries on hand to meet some 90,300 trade visitors, space at the International Hardware Fair/ DIY`TEC in Cologne, Germany, March 3-6, was sold out. But the 286,000 square metres of exhibition space at KölnMesse featured only seven exhibitors from Canada. But while exhibitors were down from as many as 26 in the past, the presence of buyers and other companies seeking product and merchandising ideas were at a record high for Canadian participation.

The focal point for the more than 100 Canucks at the show was the Third Annual Canada Night Reception, held March 3 on the fair grounds. There, buyers and executives from Canadian Tire, Sears, Home Hardware, Ace Hardware, Acklands-Grainger and Lee Valley Tools enjoyed German beer and rubbed shoulders with representatives from companies such as Ryobi, Weiser, Mibro, Bosch, LePage and more.

This year, the event took on a more international aspect, as the heads of the French manufacturers’ association, Unibal, the British Hardware and Housewares Manufacturers Association, and the European federation Fediyma, were on hand; additional representatives from as far away as Australia also showed up.

This is the first year that attendees at the International Hardware Fair found themselves using the Euro. This new currency replaces the mark in Germany and the currencies of 11 other countries in the European Union. The effect is expected to be positive for consumers, as price comparisons from one country to another become instantly easier, both for end users and retailers themselves. The downward pressure on pricing at both wholesale and retail will have an impact on suppliers, as well.

During the Lord Mayor’s dinner just prior to this year’s show, a new name and logo were unveiled. Beginning next year, the show will be called Practical World, a vague catch-all for the three main sections of the event: tools, locks and security and building materials. Next year’s show will be held March 9-12, 2003.

(Next week: more on what we saw in Cologne – Michael)

Negotiations between the two groups began last year at at the International Hardware Fair/DIY’TEC in Cologne, Germany, where Lucien Hardt, general manager of Euro-Mat, first met Paul Ingevaldson, Ace’s vice-president international, logistics and new business. Euro-Mat had had some previous discussions with Do-it Best Corp. which failed to produce results.

According to Euro-Mat’s Hart, “This is the first-ever intercontinental buying relationship.” Both organizations, he adds, can share their expertise and suppliers to better compete against big boxes.

The aim of the new association, says Herbert, will be to address some of the issues facing the heavily saturated DIY home improvement industry in Europe, including shrinkage and logistics. A proposed promotional campaign to increase consumer awareness and increase the size of the consumer market is also under consideration.

The new association will be launched officially at the BHB’s annual congress in Berlin in April, when other countries from the European Union are expected to join. This initiative by the retail associations follows the formation two years ago of Fediyma, the federation of European DIY manufacturers’ associations.

Sears Canada has announced the retirement of William R. (Bill) Turner, president, merchandising, marketing, and logistics, effective April 17, 2002. Turner began with Sears in 1966 as a management trainee in Ottawa. In 1986, he was appointed vice-president, merchandising and assumed the additional duties of catalogue and distribution in 1989. He was promoted to his latest position in 1997. (416-362-1711)

TruServ Canada is currently upgrading its website with enhancements to the members-only site. Phase two of the website’s development is expected to be completed by September 2002, at which time the site will offer online ordering, as well as sales information and trends based on POS information from the stores themselves.

Hudson’s Bay Co. has reported that sales for the year ended January 31, 2002 increased 0.6% to $7.45 billion. Net earnings for the year were $73.4 million. The Bay had sales of $2.67 billion, down 1.3% from last year, with same-store sales down 4.8%. At Zellers, sales increased 1.9% to $4.69 billion; same-store sales increased 1.1%.

Newell Rubbermaid has taken over American Tool Cos. Newell already owned 49.5%, and paid US$419 million for the remainder, including assumption of debt. American Tool had 2001 sales of US$443.6 million and employs 4,600 people. This latest acquisition will be operated within Newell’s Levelor/Hardware Group, which had US$1.4 billion in sales and is led by B&D alumnus James Roberts. Allen Petersen, former head of American Tool, will continue with the new group as a consultant.

Kmart Corp. will receive $2 billion in new financing to help it through its reorganization, thanks to a decision by a bankruptcy court judge yesterday. The discount retailer will also get up to $150
million to distribute bonuses to its key executives and store managers.

In an undisclosed cash deal, Bed Bath & Beyond in the U.S. has purchased Harmon Stores Inc., which operates 27 health-and-beauty stores.

Weak job growth in 2001 and 2002 is considered the main reason for a small decline in housing starts this year, says CMHC in its first quarter Outlook. They are expected to drop to 156,100 starts from 158,000 in 2001. A stronger economy in 2003 is expected to boost demand again in 2003, with starts forecast to reach 159,200. Alberta is considered where the strongest growth will occur, while British Columbia is expected to continue rebounding from its slump.

Hardlines will be your eyes and ears at the Cologne International Hardware Fair/DIY’TEC this week. We’ll be on the lookout for the latest in product and merchandise trends worldwide. Watch our website every day for updates! — Michael

The boutique approach is something new both for TSC and for Prout’s, a Castle member with a strong contractor customer base. But Prout’s wants to expand its hardware offerings, and is willing to let TSC do it, so it’s turned over its retail showroom to TSC. Prout’s traditional retail contractor customers continue to get served from the service desk at the back of the store.

Called TSC Villager, the smaller size store features about 75% of the assortment found in a larger 22,000-sq.ft. TSC outlet, but in smaller quantities. Existing core lines of hardware, plumbing and electrical, formerly purchased through wholesalers such as Howden, are being replaced by TSC’s own selection (TSC is a member of Mutual Hardware). New lines will reflect TSC’s emphasis on the rural market, with the addition of workwear, safety clothing and equipment, pet supplies and farm products. The Villager experiment has been given a one-year trial period.

Prout’s existing staff, plus some new people, will work the TSC Villager sales floor, under a management contract forged between TSC and Prout’s.

TSC also opened its 19th stand-alone store in Ontario this weekend, this one a full-sized, 22,000-sq.ft. outlet in Peterborough. Another store will follow in Bowmanville in June.

Para ProSource is headed up by Doug Munro, general manager. Formerly a buyer with Homecare Building Centres, he was approached by Para just over a year ago to provide better sourcing and purchasing power to 300 Para dealers across Canada. The result was Para ProSource, which is owned by Para, but operated by Munro on a contract basis.

The buying group does not deal in paint. Instead, it gives dealers better access to accessories and décor lines, which many paint dealers are moving into in a bigger way. Everything from flooring and carpet, blinds and wallpaper are handled by Munro’s group.

Para ProSource helps the paint supplier build loyalty among its dealer customers. “This is really geared for the independent paint and wallpaper store,” he says. “The dealers have become extremely loyal to Para and the program has helped us develop new members.”

Munro is also developing private label products within the group. He’s just launched ProSource private-label brush program, in addition to existing programs for window blinds and wallpaper. “Nothng like this has been done before [for paint dealers],” he notes. “All these dealers had to run around to different suppliers on their own.”

Two more stores, in California and Colorado, will open this year. In addition, Home Depot plans to extend its pro services package to 400 existing stores in the U.S. over the next year, in addition to 535 stores outfitted during the past fiscal year. The company claims that 30% of its business comes from contractors (it’s closer to 25% in Canada). It seeks a greater piece of the estimated US$276 billion contractor market south of the border.

Since severing ties with its U.S. parent last fall, TruServ Canada has been working internally and externally to help dealers run their businesses better. “We were held back somewhat by the U.S. over the past few years,” Charrière admits. “You can expect a sharper focus on our members’ needs.”

Just last week the company launched True Value X-Sell 2002, a series of “in field” meetings to help individual hardware and building materials dealers refocus their businesses and identify new market opportunities. More than 100 stores will be involved in the initiative, which will continue until early June.

Home Depot in the U.S. reported a 53% increase in its 4Q profits, while sales were up 29% to US$13.5 billion. Profits for the fiscal year were up 18% to US$3.0 billion on sales of US$53.6 billion. Number-two player Lowe’s Cos. posted a 26% increase in profits to US$1.2 billion. While Home Depot’s profit level grew by double of Lowe’s, the latter saw same-store sales increase 7.4% in 2001, while Home Depot’s same-store sales were flat.

Rona has broken ground on a site in Mississauga, ON for another Rona Home and Garden big box. The store is scheduled to open in September 2002. Meanwhile, a site in Goucester, ON is on track to open around the third week of May.

Stanley Works has forged an agreement with Home Depot in the U.S. to become the supplier of choice for hand tools. The five-year deal includes Stanley Bostitch pneumatic tools. Stanley will also continue a 1992 deal whereby it manufactures Husky, Home Depot’s proprietary brand of mechanics’ tools and tool boxes. Stanley also now has the exclusive on builders’ hardware in Home Depot.